Teradyne posts $1.306 billion Q3 revenue as AI demand lifts results
The chip-testing company grew sales 70% year over year, beat its own guidance, and saw its robotics unit turn a profit for the first time
Teradyne just had the kind of quarter that makes a CFO’s spreadsheet look like a typo. The company reported third-quarter revenue of $1.306 billion, up 70% from a year earlier, and landed above its own guidance.
The driver will surprise no one who has read a business headline in the last two years. Artificial intelligence demand, specifically the need to test the chips that power it, did most of the heavy lifting.
Teradyne (NASDAQ: TER) is not a household name. But it sits in a part of the semiconductor supply chain that gets very busy when everyone wants more AI hardware at once.
The numbers behind the quarter
Start with the headline figure. Third-quarter 2026 revenue reached $1.306 billion, compared with $769 million in the same quarter of 2025.
That is a 70% jump in twelve months.
The Semiconductor Test segment was the engine. It brought in $1.072 billion on its own, the overwhelming majority of the company’s total sales.
The other two segments contributed too. Product Test generated $138 million, while Robotics added $96 million.
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Robotics deserves its own moment. That $96 million marked the segment’s highest third-quarter revenue to date, and the unit reached profitability for the first time.
Profits followed the revenue
Teradyne reported GAAP net income of $342.4 million for the quarter, or $2.17 per diluted share. On a non-GAAP basis, net income came in at $359.9 million, or $2.29 per diluted share.
CEO Greg Smith credited the company’s broad product portfolio for the results. He also pointed to Teradyne’s strategic focus spanning from wafer to data center, describing it as a key driver of the company’s continued momentum.
Smith framed AI demand as something touching nearly every corner of the business, from memory testing all the way to robotics.
According to the company’s results, AI has recently accounted for over 60% of Teradyne’s total revenue.
What Teradyne expects next
Management did not signal a slowdown. Teradyne guided fourth-quarter 2026 revenue to a range of $1.25 billion to $1.35 billion.
What this means for investors and the industry
For investors, the most important figure may be the AI share of revenue. Over 60% is both a strength and a concentration risk.
The Robotics turnaround is the quieter story worth watching. A first-ever profitable quarter does not make a trend. But if the segment can sustain it, Teradyne gains a second growth leg that is less dependent on semiconductor cycles.
Smith’s comments linked robotics to the same AI wave driving chip testing.